To maximise ESG returns on a fund level, it is important to develop a bespokeenvironmental and social management system (ESMS), with reporting requirements clearly articulated for individual portfolio companies. This system should be informed by the funds ESG strategy and should be aligned to reporting requirements outlined by LPs with the ultimate objective of maximising exit valuation and subsequent increased carry for the fund manager.
EBS Advisory provides support to private equity fund managers during the various stages of the investment life cycle and are often appointed on a retainer basis, acting as inhouse ESG expert for the fund. EBS Advisory thus supports not only system design and implementation, but also in collection, analysis and reporting of ESG risks and value creation. Ongoing training and capacity building of the ESG teams on fund and portfolio level are also a focus area.